3 ms·

And I don't buy the coincidental timing of the fed trying to push us into a recession, which they were not being successful at, following shortly with public co

And I don't buy the coincidental timing of the fed trying to push us into a recession, which they were not being successful at, following shortly with public companies like Google suddenly finding a bunch of inessential staff to cut. It's not like Google is taking out loans for payroll, or that it was obvious that this move was necessary. These inessential employees have been inessential for years.

dehrmann 4y ago
The standard argument is that tech companies hired-up for 2021 lasting forever, but people spent less time shopping online in 2022. The poster child for this is Peloton. On top of the shift in demand, higher interest rates hit other companies that would otherwise advertise on Google. Did Google need to do layoffs? No. Did it over-hire for revenue that never materialized? Yes.
gruez 4y ago
>It's not like Google is taking out loans for payroll They might not be actively taking out loans, but that doesn't mean they're immune to interest rates. Higher interest rates means that a dollar in 10 or 20 years is suddenly worth less than a dollar today. That means investors suddenly care more about how many profits can be generated today, rather than whatever moonshot projects that google is working on.